Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1887-12-08
THE REVENUES.
President Cleveland DevOtes His
Message Largely to a Dis
cussion of this Subject.
He Also NeSofcs Considerable
Space 10 the Tariff avs,
But the Message Is
EBricfand Concise.
Its Brevity Win Insure its General
Pcrusal.


! To the Congress Of The United States.
You are confronted at the Threshold Of your
| legislative duties with condition of the nation.
al finances which imperatiyely demands i'm.
| mediate and careful consideration. The amount
OF money annually received, through the oper-
| alton of present laws, from the Industries and
necessities of the people largely exceeds the
| sum necessary to meet the expenses OF the
| government When we consider that the
! theory OF our institutions guarantees to every
| citizen the full enjoyment Of the fruits OF his
| industry and enterprise with only such deduc-
| tions us may be his share toward the care
| full and economical maintenance of government
which protects him, II Is plain that the exaction
OF more than this is indefensible and culpable
betrayal of fairness and justice.
This wrong inflicted upon those who bear the
/ burden OF national taxation, like other wrongs
multiplies brood of evil consequences. The
public treasury, which should only exist as a
! conduit conveying the peoples tribute to its
| legitimate objects OF expenditures, becomes a
boarding place for money needlessly with irawn
| from trade and the peoples use thus crppling
out national energies, usurpng our country's
| development, preventing investments Ia pro.
| ductiye enterprises, threatening financial dis
| turbancc and inviting schemes Of public plum
| der.
| This condition OF our treasury Is not altogeth-
| er new and 1t has more than once of late been
submitted TO the peoples representatives In
| the congress, who alone can apply remedy;
and yet the situation still continues with ag-
| grayatcd incidents more than ever presagiDg
! financial CONFUSION and widespread disaster
| Ii will not do to neglect this situation because
its dangers are not now palpably imminent and
| apparent. They exist none the less certainly
and the unforeseen and unexpected occasion
when suddenly they will be precipitated upon
us. On the Both Of June iSS5, the excess of
! revenue over public expenditures after com
| plying with the annual requirement of the
| sinking fund act, was Sl7,S59, 125. 81;
during the year ended June 30, 1856, such ex-
cess amounted to $40, I05, 555 20; and during
| the year ended June 30, 1887, IL reached The
sum of So, 567, Si9.5i. The annual contribu-
| lions to the sinking fund during the three
| years above specified, amounting In the aggrc-
gate to sl3S, 05S, 5000 and dcductng from
the surplus as stated were made by calling In
for that purpose outstanding three per cent.
bonds OF the government During the six
months prior to June 30, 1887, the surplus
revenue had grown so large by repeated acc,l-
mutations that il was feared The withdrawal
OF this great sum OF money needed by the
people would so affect the business Of the
country, that the sum OF $40 S6i, 100 OF such
| surplus was applied 10 the payment Of the
principal and interest OF the three per cent,
bouts still outstanding and which WIRE then
payable ut The option Of the government.
The prccarinus condition Of financial affairs
diately after the Both day of June, 1851 the re-
| maindcr Of the three per cent. bonds then out
standing amounting with principal aud inter
est to the sum Of SlSS17 800, were called In
and applied TO the sinking fund contribution
for the current fiscal year. Notwithstanding
these operations of the treasury department.
representations Of distress IN business circles.
not only continued but increased, and ALSO
lutc peril seemed at hand In these circun-
stances, the contribution TO the sinking fund
for the current fiscal year was at once com
plcted by the expenditure OF S21,GS2, 2S3.j5 IN
the purchase of government bonds not vet due
bearing -four and four and a half per cent.
interest the premium paid thereon averaging
about twenty four per cent. for the former and
eight per cent. for the latter. In addition 10
this the Interest account aCcruing during the
current year upon the outstanding bonded in
dcbtcdncss Of the government was TO some ex-
tent anticipated and hanks selected as dcposi-
tories OF public money were permitted to some
what increase their deposits. While the ex-
pedients thus employed to release to the peo-
pie the money lying in the treasury served TO
avert immediate danger, our surplus revenues
have continued To accumulate, the excess for
the present year amounting on the first day OF
December To So, 25S, S7l. ~ and estimated 10
reach the sum of Sll3,000,000 on the 30th Of
June next, at which date II is expected that
this sum, added to the prior Accommodations,
will swell the surplus in the treasury to $li0,-
900, 600. There seems to be no assurance that
with such n Withdrawal from use of the peo-
pies circulating medium, our business com
munity may not In the near future be sub
iCcted 10 the same distress which was quite
lately produced from the same cause. And
while the functions OF our national treasury
should be few and simple, and while its best
condition would he reached, | believe by its
entire disconncction with the private business
interests, yet when by perversion of its pur-
poses, II idly holds money uselessly substracted
r.
reason for the claim that legitimate means
should be devised by the government to re-
store In an emergency without waste or cy-
travagancc such money to its place among the
people. III such an emergency arises, there
now exists no clear and undoubtcd executive
power Of relief. Heretofore the redemption Of
the three per cents only which were payable at
the option OF the government, has afforded n
means for the disbursement OF the excess Of
our revenues; but these bonds have all been
retired, and there are no bonds outstanding
the payment of which we have the right to iii-
sist upon. The contribution to the sinking
fund which furnishes the occasion for expen-
diturcs In the purchase OF bonds has been al
ready made for the current year. So there Is
no outlet in that direction.
In the present state of legislation, the only
prctcnsc OF any existing executive power TO re-
store, at this time, any part of our surplus rev.
enues to the people by Its expenditure consists
In the supposition that the Secretary Of the
Treasury may enter the market aud purchase
the bonds OF the government not yet due at
rate of premium 10 be agreed upon. The only
provision OF law from which such power could
be derived Is found IN an appropriation bill
passed number OF years ago, aud it is subject
To the suppositon that 1t was intended as tenn
porary and limited in its application instead of
comforting a continuing discretion and author
ity. No condition ought 10 exist which would
justify the grant OF power to single official
fF,it gF t-itk
hold from or release to the business of the peo-
plein an unusual manner money held in the
treasury, and thus affect at his will the fiuau-
cal situation Of the country; and If 1t Is deem
ed wise to lodge IN the Secretary OF Treasury
the authority IN the present iuneture to pir-
chase bonds, ii should be- plainly vested and
provided as far as possible with such checks
and limitations as will define his official right
and discretion and at the same time relieve
him from undue responsibility. In consider
ing the question of purchasing bonds
as means OF restoring to circulation
the surplus money accommodating In
the treasury II should be borne in mind that
premiums must Of course be paid upon such
purchase, that there may he a large part OF
these bonds held as investments which cannot
be purchased At any price and that comb.
nations among holders who are willing to sell,
may unreasonably enhance the cost of such
bonds to the government. Ii has been sug-
gcs,cd that the present bonded debt might be
fciuhucd at a less rate OF interest, aud the dif-
ference between the old aud new securities paid
In cash, thus IindlGg usc for the surplus In the
treasury. The success Of this plan, II Is mp
parent must be founded upon the volition OF
the holders OF the present bonds; and II Is
not entirely certain that the Inducements
TO be offered them would result In more
financial benefit to the government than the
purchase Of bonds, while the latter proposition
would reduce the principal OF the debt by
actual payment instead of extending It, The
proposition TO deposit the money held by the
government In banks throughout the country
for use by the people, Is, II seems tome exceed
ingly Objectionable In principle as reaching too
close relationship between the operations OF
the government and the business OF the coun-
try aud too extensive a coiumingling OF their
money, thus fostering an unnatural reliance In
private business upon public funds. II this
scheme should be adopted, 1t should only be
done as temporary expedient to meet an ur-
gent need. Legislative and executive effort
Sbnull Oanarallv la In ha Ia